NEW YORK (TheStreet) -- Shares of The Blackstone Group L.P. (BX) are down -3.34% to $28.10 on Wednesday following a report that private equity firms are facing possible sanctions after the SEC found a number of firms have paid illegal fees or committed rule violations.
The SEC began examining the $3.5 trillion private equity industry two years ago, Bloomberg reported.
"There will be several significant enforcement actions, enough to where the message will be pounded home loud and clear as to what is acceptable and what is not," said Jay Gould, the head of investment funds team at the Pillsbury Winthrop Shaw Pittman LLP law firm, Bloomberg reported.
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Gould said remarks made by the Drew Bowden, the head of the SEC exam program, forecast "significant changes" in how the industry will continue operating.
TheStreet Ratings team rates BLACKSTONE GROUP LP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BLACKSTONE GROUP LP (BX) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."